Apple Earnings Up As Anticipation Builds for New iPhones

Apple's growth prospects are looking brighter as anticipation builds for the upcoming release of the next iPhone. On Tuesday, the company released fiscal third-quarter earnings that topped analysts' projections as it sold 35.2 million iPhones. That was a 13 percent increase from the same time last year, even though many people are believed to be holding off on new device purchases until the next version comes out this fall. "We have some things in the pipeline that we think people will really be excited about," Chief Financial Officer Luca Maestri told the Associated Press. Apple earned $7.7 billion, or $1.28 per share, for the three months ending June 28. That represented a 12 percent increase from income of $6.9 billion, or $1.07 per share, at the same time last year. Revenue rose 6 percent from last year to $37.4 billion — about $600 million below analysts' forecasts.

Analysts expect the company to introduce two versions of its next smartphone this fall, including a 5.5-inch model that thrusts Apple into the market for larger-sized phones that rival Samsung helped popularize. Apple is also expected to enter the wearable device market with a sensor-laden smartwatch, dubbed iWatch.